Business Partner Protection - Business partners will often insure the business physical assets but neglect themselves – the most important part of a business
Why Insure Key People ?
Without the entrepreneurial drive, many businesses will quickly fail – the key-people in a business are as valuable an asset as any building. So we must ask why are they not insured ?
Often its just because we are too busy to ask a Life Insurance professional to assess the risks for the business – At WebInsure we have found the process is pretty straight forward but extremely grievous if its implemented incorrectly
Without this being done you may well end up with a partner you don’t want – for example the spouse of a business partner, who unwillingly becomes a partner, following the demise of their spouse.
Without the life cover in place the business has no means of buying them out
When You Set-Up a Key Person Protection Plan
Document it ! This is very important – Document it !
Ensure the tax provisions are catered for !
Make sure the payments of potential proceeds go to the right person in the most tax effective manner !
Check that the insurance company will allow you to incease the policy without further medicals !
Question – Is the insurer a major company? Is it likely to be around to pay long term benefits ?
Definitely involve both the partners and the beneficiaries in the process – they both need to understand what would happen in the event of a tragedy
The Life Insurance advisor is the Project Leader
Your Life Insurance advisor understands the risks of you not being insured – they are best placed to drive the process and set time frames for any other professionals needed in the process – Often the implementation can be log jammed by other professionals not understanding the limitations of insurance companies and the risk you take every day by not being insured
Our consultants are available for meetings anywhere in Australia to help businesses assess the risks -
Important Note: The above is intended as general information only and does not take into account the individual readers' financial
circumstances, needs or objectives. You should consult a Webinsure Advisor before taking any action based on this information.
WebInsure® is owned by WebInsure Pty Ltd as trustee for the Fiscal Friends Trust.
WebInsure Pty Ltd is a Corporate Authorised Representative 271148 of
Insurance House Pty Ltd
Insurance House Pty Ltd is a Licenced General Insurance Broker AFSL No. 240954